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Shooting Industry February 2011 - Page 8
Industry Industrynews By Russ Thuman he firearm industry is a hot commodity these days, with a number of states pushing to attract companies to their “gun-business friendly” communities. Idaho, South Dakota and Wyoming had booths at the SHOT Show in Las Vegas last month to showcase the benefits of industry-related companies relocating to their states. Aiding the effort is the number of states that are becoming increasingly unfriendly to business, in general, and firearm manufacturing, specifically. “Taxes, regulation, restriction of personal freedom and the effects of government policy on people are increasing. Idaho is a contrast,” said Nathan Roads, of Next Generation Arms, relating why he moved his company from Oregon to Idaho. For a number of years, South Dakota has been very aggressive in its efforts to Protect Your Customers And Your Business — pg. 20 States Campaign To Attract Firearm Companies T “ Governors’ offices are willing to provide a lot of incentives to firearm companies to relocate or, in some cases, remain in their states. attract industry-related companies. At the SHOT Show, 16 communities partnered with the South Dakota Governor’s Office of Economic Development to present the state’s benefits to firearm companies. Governors’ offices are willing to provide a lot of incentives for firearm companies to relocate or, in some cases, remain in their states. In late December, Smith & Wesson Holding Corp. announced that the Massachusetts Economic Assistance Coordinating Council (EACC) approved $6 million in tax credits in association with the company expanding its manufacturing opera- ” tions in Springfield, Mass. Smith & Wesson applied for the incentives, which support the company’s commitment to bring 225 new jobs to its Springfield headquarters, and to invest significant capital into that facility over the next five years. The credits will be awarded over a period of seven years, but hiring for the new jobs was to start in January, S&W announced. “Although several states and cities have approached us to entice expansion into their locations, Massachusetts and the PatrickMurray Administration, Secretary (Gregory) Bialecki and his office, and Springfield Mayor (Domenic) Sarno and his staff, collaborated on the project to make our choice clear,” said James Debney, president of Smith & Wesson Firearms. For more information, visit South Dakota’s www.sdreadytowork.com, Idaho’s www.commerce.idaho.gov and Massachusetts’ www.mass.gov. S&W Announces Second Quarter Results, Relocation Of T/C mith & Wesson Holding Corp. announced in December its financial results for the second fiscal quarter of 2011, which ended Oct. 31, 2010. Total company net sales of $96.3 million for the quarter were down $13.4 million, or 12.2 percent, as compared to the same 2009 quarter. “As overall purchasing of firearms moderated during the quarter, compared with the record levels a year ago, total sales came in slightly below our previously issued guidance,” said Mike Golden, Smith & Wesson Holding Corp. president and CEO. In the Firearm Division, net sales for the second quarter were $83.6 million, a decrease of $9.8 million, a 10.5 percent drop compared to the second quarter of 2009. In the company’s Perimeter Security Division, net sales for the second quarter were $12.8 million, compared with net sales of $16.3 million for the comparable 2009 quarter. In its financial report, S&W also announced the relocation of its Thompson/Center Arms operations from Roches- S ter, N.H., to the company’s Springfield, Mass., facility. The relocation began in January and is scheduled to conclude by November 2011. “The relocation of our Thompson/Center Arms operations is designed to streamline our firearms manufacturing processes and improve our margins,” Golden said. S&W reports that after the close of the second quarter, it successfully expanded its revolving line of credit from $60 million to $120 million. “We are continuing to operate under challenging industry conditions with reduced consumer spending and difficult year-toyear comparisons to prior-year surge levels. As we enter the second half of our fiscal year, our new and expanded credit facility strengthens the resources available to enhance our business. We are also taking steps that we believe will improve our operating performance,” Golden said. For more information, visit www.smith-wesson.com. $31+ Million SureFire Awarded Contracts See page 12 Gun Talk Radio Downloads See page 17 1.7 Million Rounds Fired Through HK P30 See page 46 91,622 Subscribe to SI Digital: 8 FEBRUARY 2011 www.shootingindustry.com. Read SI DIGITAL It’s Free! www.shootingindustry.com